According to Rosstat data, the lowest egg prices are recorded in Mordovia at 56.97 rubles, while Moscow has the highest prices at 117.15 rubles. Retailers state they are not engaged in price dumping, explaining that falling wholesale prices from producers are driving the reduction in retail prices.
Since the beginning of the year, according to AKORT, egg prices in retail chains have decreased by nearly 38%, dropping from an average of 100 to 67 rubles per dozen. This marks the lowest price level since August 2023.
Last winter, at the peak of price increases, 140 rubles per dozen eggs became the new norm. Currently, first-category eggs can be found in “Pyaterochka” for 39.99 rubles, in “Lenta” under its private label for 48.50 rubles, and in “Perekrestok” for 60 rubles. While this benefits consumers, producers are displeased. Many are forced to reduce their laying hen populations. Media outlets have even reported instances of “hen-cide,” where one poultry farm in the Krasnodar Krai reportedly stopped feeding its birds, and another in Udmurtia abandoned three thousand live chickens.
Hayk Balayan, owner of an egg wholesale company, commented on the current industry situation:
“This is a very critical situation for poultry farms. The cost price for a first-category egg is 54 rubles. The number of producers has increased.
— Is it true that some producers are culling laying hens en masse?
— Yes, absolutely. This is done to reduce supply and somehow regulate the price decline. It`s also very costly for poultry farms because they then have to restore the number of chickens. Generally, 60 rubles is an optimal price for producers, wholesalers, and the market as a whole.”
According to Rosstat, egg prices in Russia have decreased by 20% since the beginning of the year. In March, the Russian Poultry Union informed the Ministry of Agriculture, the Ministry of Industry and Trade, and the Federal Antimonopoly Service about falling procurement prices, which led to negative sales profitability. The Union attributed this trend to late February, when eggs were removed from the list of goods for which producers pay retail chains a commission. However, experts believe that producers have no grounds for complaint, as they made substantial profits during the peak price surge. Nikolay Lychev, editor-in-chief of Agrotrend.ru, continued:
“We observe that the current egg market has become somewhat more predictable due to administrative measures. The most widespread and effective of these is the conclusion of long-term contracts for the supply of socially important goods. According to the Ministry of Agriculture, the share of such contracts between suppliers and egg retailers amounts to 70-80% of the total volume. This is a very high figure; for comparison, for vegetables, it`s 50-60%. I believe poultry farmers still have a good margin, because they earned very well last year, and they can afford to sell eggs at the `social` price suggested by retail chains and the state.”
Poultry farms continue robust production. From January to May, they released 16.5 billion chicken eggs onto the market. Wholesale prices had to be reduced because increased supply coincided with a drop in demand. Experts suggest that the situation for producers might improve as early as autumn. Prices are expected to rise again by 3-7% due to seasonal demand, while social programs will help prevent significant price surges. Stanislav Bogdanov, Chairman of the Presidium of AKORT, commented:
“Currently, we have no information from our partners indicating a potential sharp increase in egg prices. Retail prices are responding to the decrease in wholesale prices from suppliers and producers, and the market shows ample supply with moderate demand. It`s worth noting that for retail, eggs are a traffic-driving category where retail prices differ little from procurement costs. To reduce price volatility for a range of goods, we are discussing various stabilization options with government agencies, primarily through long-term contracts. This is, of course, a complex task, and ideal ready-made solutions are not yet available.”
While Russian poultry farmers are trying to balance their finances, foreign tourists are posting videos from local grocery stores on social media. A Bulgarian tourist, walking past the egg display, converted the price of 32 rubles per dozen into his national currency, resulting in less than one lev — 68 stotinki. For comparison, in Sofia, a dozen of the cheapest eggs on promotion, according to the Metro website, costs 5 levs, which is equivalent to 236 rubles at the current exchange rate.
